Case 2:14-cv-03113-JAK-JEM Document 34 Filed 07/11/14 Page 1 of 33 Page ID #:202 1 Randall J. Sunshine (SBN 137363) [email protected] 2 Ryan E. Hatch (SBN 235577) [email protected] 3 Jason L. Haas (SBN 217290) [email protected] 4 LINER LLP 1100 Glendon Avenue, 14th Floor 5 Los Angeles, California 90024.3503 Telephone: (310) 500-3500 6 Facsimile: (310) 500-3501 7 Attorneys for Plaintiff SIGNAL IP, INC. 8 UNITED STATES DISTRICT COURT 9 CENTRAL DISTRICT OF CALIFORNIA 10 11 SIGNAL IP, INC., a California Case No. LA CV14-03113 JAK (JEMx) 12 corporation, FIRST AMENDED COMPLAINT 13 Plaintiff, FOR PATENT INFRINGEMENT 14 vs. 15 VOLKSWAGEN GROUP OF AMERICA, INC., d/b/a. AUDI OF JURY TRIAL DEMANDED 16 AMERICA, INC., a New Jersey corporation; BENTLEY MOTORS, 17 INC., a Delaware Corporation, 18 Defendants. 19 Plaintiff Signal IP, Inc. (“Signal IP” or “Plaintiff”) brings this First Amended 20 Complaint against Defendants Volkswagen Group of America, Inc., d/b/a Audi of 21 America, Inc. and Bentley Motors, Inc. (collectively, “Defendants”), as permitted by 22 Fed. R. Civ. P. 15(a)(1)(B), alleging as follows: 23 PARTIES 24 1. Plaintiff Signal IP is a California corporation with its principal place of 25 business at 11100 Santa Monica Blvd., Suite 380, Los Angeles, CA 90025. 26 2. On information and belief, Defendant Volkswagen Group of America, 27 Inc., d/b/a Audi of America, Inc. is a New Jersey corporation with its principal place 28 Case No. LA CV14-03113 JAK (JEMx) FIRST AMENDED COMPLAINT FOR PATENT INFRINGEMENT Case 2:14-cv-03113-JAK-JEM Document 34 Filed 07/11/14 Page 2 of 33 Page ID #:203 1 of business at 2200 Ferdinand Porsche Drive, Herndon, VA 20171. 2 3. On information and belief, Defendant Bentley Motors, Inc. is a 3 Delaware corporation with its principal place of business at 2200 Ferdinand Porsche 4 Drive, Herndon, VA 20171. 5 4. On information and belief, Defendants are part of an integrated 6 automotive group that manufactures and distributes cars under brand names 7 including “Audi”, “Volkswagen”, and “Bentley.” 8 JURISDICTION, VENUE AND JOINDER 9 5. This action arises under the patent laws of the United States, Title 35 of 10 the United States Code. This Court has subject matter jurisdiction pursuant to 28 11 U.S.C. §§ 1331 and 1338(a). 12 6. This Court has personal jurisdiction over Defendants. Defendants have 13 conducted extensive commercial activities and continue to conduct extensive 14 commercial activities within the State of California. Defendants are registered to do 15 business in California. Additionally, on information and belief, Defendants, directly 16 and/or through intermediaries (including Defendants’ entities, subsidiaries, 17 distributors, sales agents, partners and others), distribute, offer for sale, sell, and/or 18 advertise their products (including but not limited to the products and services that 19 are accused of infringement in this lawsuit) in the United States, in the State of 20 California, and in this judicial district, under the “Audi”, “Volkswagen”, and 21 “Bentley” brand names. Defendants have purposefully and voluntarily placed one 22 or more of their infringing products and services into the stream of commerce with 23 the expectation that the products and services will be purchased or used by 24 customers in California and within this judicial district. Accordingly, Defendants 25 have infringed Signal IP’s patents within the State of California and in this judicial 26 district as alleged in more detail below. 27 7. Venue is proper in this district under 28 U.S.C. §§ 1391 and 1400(b). 28 2 Case No. LA CV14-03113 JAK (JEMx) FIRST AMENDED COMPLAINT FOR PATENT INFRINGEMENT Case 2:14-cv-03113-JAK-JEM Document 34 Filed 07/11/14 Page 3 of 33 Page ID #:204 1 BACKGROUND 2 8. Signal IP, Inc. is a California corporation with a principal place of 3 business at 11100 Santa Monica Blvd., Suite 380, Los Angeles, CA 90025. It is the 4 owner of the entire right, title and interest in and to U.S. Patent Nos. 5,714,927; 5 5,732,375; 5,954,775; 6,012,007; 6,434,486; and 6,775,601 (the “Patents-in-Suit”), 6 including the right to recover for past, present and future infringement. 7 9. On information and belief, Defendants are direct or indirect 8 subsidiaries of global car manufacturer and distributor Volkswagen AG, which is 9 headquartered in Germany. Volkswagen AG manufactures and distributes cars 10 under brand names including “Audi”, “Volkswagen”, and “Bentley.” 11 10. Defendants have knowledge of each of the Patents-in-Suit, and have 12 had the specific knowledge that their products and services described below infringe 13 the Patents-in-Suit, since at least the filing of the complaint in this action on April 14 23, 2014, which was served on Defendants on April 30, 2014. Signal IP gives and 15 has given Defendants notice of its infringement of the Patents-in-Suit. 16 11. Signal IP has also already served Defendants with its Asserted Claims 17 and Infringement Contentions pursuant to Standing Patent Rule §§ 2.1 and 2.2 (the 18 “Infringement Contentions”), on July 8, 2014. The Infringement Contentions 19 provide Defendants with notice of each claim of each patent in suit that is 20 infringing, and separately for each asserted claim, identify each accused 21 instrumantality in a manner that is as specific as is reasonably possible. The 22 Infringement Contentions also identify specifically where each limititation of each 23 asserted claim is found within each accused instrumentality, and identify the basis 24 for Signal IP’s allegations of willful infringement. The Infringement Contentions 25 set forth Signal IP’s allegations of infringement in this matter. 26 FIRST CLAIM FOR RELIEF 27 (Infringement of the ‘927 Patent) 28 12. Plaintiff incorporates all previous paragraphs of this complaint as if set 3 Case No. LA CV14-03113 JAK (JEMx) FIRST AMENDED COMPLAINT FOR PATENT INFRINGEMENT Case 2:14-cv-03113-JAK-JEM Document 34 Filed 07/11/14 Page 4 of 33 Page ID #:205 1 forth in full herein. 2 13. Signal IP is the owner of the entire right, title, and interest in and to 3 U.S. Patent No. 5,714,927 (the ‘927 Patent), entitled “Method of Improving Zone of 4 Coverage Response of Automotive Radar.” The ‘927 Patent was duly and legally 5 issued by the U.S. Patent and Trademark Office on February 3, 1998. A true and 6 correct copy of the ‘927 Patent is attached as Exhibit A. 7 14. On information and belief, Defendants have been and are directly 8 infringing, inducing others to infringe, and/or contributorily infringing, literally, 9 under the doctrine of equivalents, and/or jointly, one or more claims of the ‘927 10 Patent, including, but not limited to, claims 1, 2 and 6 (“the ‘927 Patent Asserted 11 Claims”), in the State of California, in this judicial district, and elsewhere in the 12 United States by, among other things, importing, making, using, offering for sale, 13 and/or selling in the United States certain methods or systems disclosed and claimed 14 in the ‘927 Patent, including, but not limited to, the Active Blind Spot Assist 15 system, used in products including, but not limited to, to the Audi A3, A4, A4 16 Allroad, A4 Sedan/Avant, A5, A6, A7, A8, Q3, Q5, Q7, Q5 Hybrid, S4, S5, S5 17 Cabriolet, S6, S7, S8, SQ5, RS5, and RS7, and the Volkswagen CC, Touareg, 18 Phaeton, and Touareg Hybrid (collectively, the accused products and features are 19 referred to herein as “the ‘927 Patent Accused Instrumentalities,” although the 20 accused instrumentalities and asserted claims have been formally identified in 21 Signal IP’s Infringement Contentions). 22 15. The ‘927 Patent Accused Instrumentalities are described or have been 23 described at least in part online at: 24 http://www.audiusanews.com/newsrelease.do?&id=2757&allImage=1&teaser=drive 25 r-assistance-systems∣ and 26 http://en.volkswagen.com/en/innovation-and-technology/technical- 27 glossary/spurwechselassistentsideassist.html. 28 16. As described below in and in the Infringement Contentions, 4 Case No. LA CV14-03113 JAK (JEMx) FIRST AMENDED COMPLAINT FOR PATENT INFRINGEMENT Case 2:14-cv-03113-JAK-JEM Document 34 Filed 07/11/14 Page 5 of 33 Page ID #:206 1 Volkswagen includes a radar system where a host vehicle uses radar to detect a 2 target vehicle in a blind spot of the host vehicle driver which improves the perceived 3 zone of coverage response of automotive radar. Volkswagen determines the relative 4 speed of the host and target vehicles and selects a variable sustain time as a function 5 of relative vehicle speed. Volkswagen detects target vehicle presence and produces 6 an alert command. Volkswagen activates an alert signal in response to the alert 7 command. At the end of the alert command, Volkswagen determines whether the 8 alert signal was active for a threshold time and if the alert signal was active for the 9 threshold time, Volkswagen sustains the alert signal for the variable sustain time; 10 where the zone of coverage appears to increase according to the variable sustain 11 time. 12 17. According to Defendants’ website or documentation, Defendants’ Side 13 Assist system “monitors traffic behind the vehicle and warns the driver of critical 14 lane changes as necessary” through the use of “[t]wo radar systems at the rear 15 [which] scan the areas up to around 50 metres behind the vehicle and in the blind 16 spots to the sides.” 17 18.